Type of corporation, governed by state statute, that allows members of certain licensed professions to own stock in a corporation organized to render services in that profession. Members of a professional corporation remain liable for their own personal negligence and malpractice, but will not be liable for the negligence or malpractice of other members.
Definition from Nolo’s Plain-English Law Dictionary
A type of corporation authorized by state law for a fairly narrow list of licensed professions, including lawyers, doctors, accountants, many types of higher-level health providers, and sometimes architects. A professional corporation does not free an owner from personal liability for his or her own negligence or malpractice, but owners are not personally liable for the malpractice of other owners. In some states, limited liability partnerships offer this same benefit and may be more desirable for other reasons.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:22 pm